$120B Liquidated As BTC, ETH, XRP, Altcoins Price Tumble

The
cryptocurrency
market
experienced
a
sharp
correction
in
the
early
US
hours,
with

Bitcoin

(BTC),
Ethereum
(ETH),
and
Ripple
(XRP)
all
facing
significant
declines.
The
bearish
trend
led
to
the
liquidation
of
$120
billion,
resulting
in
a
2.5%
drop
in
the
overall
market
capitalization,
now
at
$2.52
trillion.

BTC,
ETH,
and
XRP
Lead
Crypto
Market
Decline

Bitcoin’s
price
tumbled
by
over
3%,
trading
at
$67,241.
Similarly,
Ethereum
and

Ripple

followed
suit,
with
XRP
seeing
a
1.73%
decline
to
$0.5188.
This
widespread
downturn
has
affected
the
broader
cryptocurrency
market,
leading
to
increased
volatility.

On-chain
metrics
indicate
a
significant
inflow
of
cryptocurrencies
to
exchanges.
This
trend
suggests
that
more
investors
are
preparing
to
sell
their
holdings,
a
common
precursor
to
market
corrections.
The
increase
in
supply
on
exchanges
often
results
in
lower
prices,
exacerbating
the
current
bearish
sentiment.

Declining
engagement
and
activity
further
underscore
the
health
of
the
crypto
market.
Metrics
such
as
active
addresses,
transaction
volumes,
and
network
activity
are
all
showing
signs
of
decline.
This
reduced
activity
indicates
waning
investor
interest
and
engagement
within
the
crypto
ecosystem.

The
bearish
sentiment
coincides
with
the
release
of

UK
inflation

data.
The
annual
inflation
rate
in
the
UK
eased
to
2.3%
from
3.2%
last
month,
but
it
was
higher
than
the
forecasted
2.1%.
Despite
missing
market
expectations,
the
Pound
Sterling
strengthened
as
UK
inflation
neared
the
Bank
of
England’s
2%
target.

Regulatory
News
and
Inflation
Data
Hit
the
Crypto
Market

The
US
dollar
index
(DXY)
experienced
volatility
following
the
UK
inflation
data,
ultimately
falling.
However,
the
US
10-Yr
Treasury
yield
(US10Y)
saw
an
unusual
increase
to
4.457%,
adding
to
the
volatility
in
Bitcoin
prices
despite
low
trading
volumes.

Moreover,
yesterday’s
release
of
the
Federal
Open
Market
Committee
(FOMC)
Minutes
contributed
to
traders’
cautious
approach.
Many
Fed
officials
expressed
concerns
about
inflationary
pressures,
suggesting
that
this
might
delay
or
reduce
the
number
of
expected
rate
cuts
this
year.
This
cautious
stance
has
added
to
the
negative
sentiment
in
the
crypto
market.

Regulatory
news
has
also
contributed
to
the
recent
market
downturn.
The

SEC

has
maintained
a
conservative
stance
on
the
crypto
bill
recently
approved
by
the
House
of
Representatives.
SEC
Chair
Gary
Gensler
emphasized
the
agency’s
readiness
for
dialogue
while
continuing
to
enforce
laws
ensuring
token
operators
provide
necessary
disclosures
to
investors.

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